Market slow to react to chickpea tariff increase by India

DESPITE the Government of India’s decision to lift tariffs on imported chickpeas to 44 per cent, there has been little to no movement in cash chickpea prices.

While the Victorian Farmers Federation (VFF) described grain farmers as “reeling from another blow,” to the trade relationship with India, it seems the initial effect has been buffered by alternative markets.

Sitting in a historical decile nine cash price of about $600 a tonne, the indicative desi chickpea cash price from major traders has remained unchanged since the mid-week announcement.

“This increase flies in the face of previous discussions with the Australian government, in which officials were assured that India would provide notice prior to imposing or increasing any further tariffs,” he said.

“Tariff barriers discourage Australian growers from planting chickpeas and other grains aimed at the Indian market and motivate them to consider alternative crops.